Electric Vehicle Division News

Electric Fuel's Electric Bus Takes First On-Road Drive in Las Vegas

- Public Demo of Company's Zinc-Air, Zero-Emission Bus Is Scheduled Today, Coinciding with Two-Day Symposium for Transit Operators and Industry Representatives -

November 27, 2001 — Electric Fuel Corporation (Nasdaq: EFCX) today announced the first on-road demonstration drive of the zero-emission electric bus based on the company's zinc-air fuel cell technology. The demonstration, scheduled today in Las Vegas, is part of a two-day event showcasing the vehicle to transit operators and industry representatives from around the country. Members of the public as well as select congressional, government and industry VIPs are invited to participate in the test drive.

The demonstration marks the public debut of the first full-sized electric bus offering an affordable alternative to diesel fuel. The bus is designed to eliminate pollution as well as health problems associated with diesel fuel emissions.

“The zero-emissions bus we are demonstrating in Las Vegas promises to provide a better quality of life for people in urban environments today and for their children and their children's children in years to come,'' said Yehuda Harats, President and CEO of Electric Fuel Corporation. “It offers cleaner and healthier air, eliminates the noise created by conventional city buses, and even promotes a sound energy policy by helping reduce our dependence on imported petroleum.''

“Electric Fuel's electric bus takes an important step toward reducing pollution as well as promoting energy conservation by eliminating the need to power city buses with diesel fuel,'' said Senator Harry Reid (D-Nevada). “Building a bus that offers an affordable alternative fuel source and that is nearly ready for delivery is a major accomplishment, and I would like to see this kind of vehicle on the streets of our cities as quickly as possible.''

With a capacity of 40 seated and 37 standing passengers, Electric Fuel's 40-foot bus utilizes a patented zinc-air fuel cell system that stores and produces sufficient energy to operate for a full day, even with air conditioning and a full passenger load.

Installed in a standard transit bus manufactured by Volvo subsidiary NovaBus Corporation, the system creates clean electricity by using oxygen from the air to react with Electric Fuel's proprietary refuelable zinc fuel. It produces no emissions, can be refueled quickly, is nearly ready for commercial use, and is expected to be cost-competitive with diesel fuel when it goes into regular service.

In contrast, buses powered by conventional batteries are limited in size and driving range by the weight of the batteries, while buses under development using hydrogen fuel cells are considered to be expensive and are not expected to be commercially available for many years.

In August, the Electric Fuel bus was driven a record-breaking 110 miles on a single refueling carrying the weight of a typical heavy passenger payload. More than 100 miles of the test on a taxiway of the former Griffiss Air Force Base in Rome, New York, were driven for eight hours under the rigorous stop-and-go conditions of the Society of Automotive Engineers' Central Business District (CBD) test cycle, meeting all industry standards for an urban transit bus in all-day service.

Funding for the project is provided by the Federal Transit Administration as well as Electric Fuel Corporation, General Electric Corporation-Corporate Research & Development, and the Regional Transportation Commission of Southern Nevada, with additional funding from the Israel-U.S. Bi-national Industrial Research and Development (“BIRD'') Foundation. The program originated in 1998 and, with continued funding, is expected to put 15 to 20 electric transit buses on the street for a pilot project by 2003.

About Electric Fuel

Electric Fuel Corporation (http://www.electric-fuel.com), with corporate and sales offices in New York and London, England, and manufacturing and R&D facilities in Israel and Alabama, is a world leader in primary and refuelable Zinc-Air fuel cell technology, pioneering advancements in consumer electronics, electric vehicles, and defense and safety products. Electric Fuel's INSTANT POWER(TM) batteries and chargers are also based on the Company's patented, cutting-edge Zinc-Air fuel cell technology, and are on sale at retail outlets throughout the United States, Canada, Europe and Israel.

The matters discussed in this news release include forward-looking statements that are subject to risks and uncertainties that may cause actual results to vary significantly. These risks include market and competitive factors, and other risks described in Electric Fuel's most recent annual report on Form 10-K for the fiscal year ended December 31, 2000, and other filings with the Securities and Exchange Commission. Electric Fuel assumes no obligation to update the information in this release.